As an individual it is easy to disassociate ourselves from where our money is going. Placing your hard earned cash in the hands of banks, pension funds and financial advisers is the social norm, and it is often believed that as individuals our influence on the economy is insignificant. However, as the concern of the general public over the treatment of animals, people and the environment grows, the companies involved in such areas become less viable investment choices. In turn this raises recognition of socially responsible investments, turning them into sound long term investment choices. Investment and individual pressure can make long-term changes that can bring something positive to the areas that have been exploited.
What is ethical investment?
Business Dictionary defines ethical investment (I.E. Socially Responsible Investment -SRI) as an ‘Investment philosophy which attempts to balance the regard for morality of a firm’s activities and regard for return on investment. Ethical investors seek to invest (usually through mutual funds or unit trusts) in firms which make a positive contribution to the quality of environment and quality of life.’
Why does ethical investment exist?
Whether recognised or not the most influential part of modern life is money, and while this is the case (whether we like it or not) animals, humans and the environment will continue to be exploited in the name of profit. Ethical investment’s aim is to grow profits while taking into account and respecting wider social issues and concerns.
On Money Talk this Friday Simon will be joined by Talis Financial Adviser Harry Masson to discuss Ethical Investment in more detail.
If you would like to learn more tune in from 12pm this coming Friday the 5th on Channel Radio.